Building and Construction Sector Remains Steady

Media Release
March 28, 2007
For immediate release

Building and Construction Sector Remains Steady

The latest building consent figures indicate continued stability in the building and construction sector, says the chief executive of the Registered Master Builders Federation, Pieter Burghout.

Statistics New Zealand reported today that building consents were issued for 2092 units for February 2007, 162 fewer than in February last year. There were 229 apartment units authorised this February, 311 fewer than for February 2006.

“The building industry continues to remain steady as you go. The number of residential building consents in February was only 162 fewer than for February last year, which is not a huge drop,” Mr Burghout says.

“The Registered Master Builders Federation is not concerned with a decrease of this magnitude, as it has been expected for some time that the consent numbers would slowly decline through 2007.”

He says it was significant that despite the small decline in the number of consents, the value of residential building consents was $597 million, a rise of 6% on February 2006.

“At nearly $600 million, the value of consents remains high, which reflects that fact that the quality end of the market is staying the strongest, which is the part of the market RMBF members generally tend to work in.”

Mr Burghout says the five per cent drop in the value of commercial building consents “is a bit higher than was probably expected, but we expect this part of the market to hold going forward”.

ENDS

About Registered Master Builders Federation (RMBF)
* The Registered Master Builders Federation (RMBF) represents New Zealand’s premier building companies who pride themselves on delivering the highest quality houses and buildings to their clients
* RMBF has more than 1700 registered master builder member companies nationwide, who employ more than 15,000 employees and subcontractors
* RMBF members represent 65% of every dollar spent on construction
* RMBF has been in existence for more than 100 years, providing industry leadership, training and services for its members
* There are 22 regional Registered Master Builders Associations throughout New Zealand
* Registered Master Builders are assessed on their building experience, trade or professional qualifications, and practical experience before membership is approved. Re-certification of members occurs when required, with checks on their financial viability, client satisfaction and workmanship
* When engaging a Registered Master Builder for a new home, or alterations or additions (built under either full contract or a labour only contract), clients will be offered a Master Build 7-Year Guarantee, which covers loss of deposit, non-completion of the work, defective workmanship and materials and structural defects (conditions apply)

Checklist for finding a builder

Along with getting your plans in order – you must also choose the right builder for you. Here are some points for you to consider before starting your building project:

* Type of Builder – volume, custom or individual
o Volume: Larger firms that have building gangs, painting crews, joiners, plasterers etc. They are able to manage the project from beginning to end. They may cost more because they manage the process but they tend to be quick and efficient
o Custom: These are builders that have set plans which within certain limits, you can customise to your taste. Building from a set plan can be a very economical choice.
o Individual: These are small one-two person operators. They can offer a lot of flexibility, and provide a greater opportunity for you to be more involved in the whole building process.

* Registered Master Builders – Make sure your builder is a Registered Master Builder. To be registered, they must have proved that they can run a successful business and meet stringent quality standards. They must also be able to guarantee their work with a 7-year Master Build Guarantee. This is separately guaranteed by the Registered Master Builders Federation up to a certain limit.

* Type of home __– Make sure you select a company or builder that has extensive experience constructing homes in your price range and general design style.

* Reputation – Reputation is important. Look for an established builder or building company with an extensive, satisfied client list.

* Compatibility – Building a home is a highly personal and emotional experience. Question and listen to everything about prospective builders. What do other people say about the builder and what does your instinct say?

* Warranty – You should be offered a comprehensive written warranty.

* Price – The cheapest price may not be the best. Remember you need to trust this builder and a good working relationship is essential for a successful project.

* Do your homework – Look at more than one option, even if you have a preferred builder in mind. When you get quotes, tell the builder you are getting other quotes - they will appreciate your honesty.

* Award Winning –Registered Master Builders build award winning houses. Awards are given to entries that are judged to be 50-80% higher than industry standard, so if your builder carries a quality mark - you can be assured of building excellence.

ENDS

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